Sunday, January 1, 2012

HST has proven to be a job-killler

Much of this excess cash held by corporations reported below came to them by way of Stephen Harper's and Dalton McGuinty's HST transfer of wealth, leaving consumers with LESS TO SPEND and more for corporations to hoard.

Their HST tax is not even close to being a job creator. more like a job killer. Politicians only think that corporations can create jobs, whereas consumers can not. I guess it helps when only one side of that equation gets to lobby Ottawa.

Imagine a policy that increases your home heating costs by 8% in order for corporations to have more cash to hoard? During a recession no less! Unconscionable idiots.

Rising corporate cash reserves raise questions about Jan. 1 federal tax cut

By: The Canadian Press

OTTAWA - Profitable Canadian businesses will get almost $3 billion more in tax cuts this year — even as Prime Minister Stephen Harper complains about all the private "money sitting on the sidelines."

The last of five annual corporate tax cuts takes effect today, reducing the federal rate by another 1.5 points to 15 per cent.

The move comes as corporate Canada holds off on investment and squirrels away hundreds of billions of dollars while riding out a second storm of global economic turbulence in the past three years.

The latest figures from Statistics Canada show businesses sitting on more than $583 billion in Canadian currency and deposits through the third quarter of 2011.
Critics of the Harper government's corporate tax cuts say those rising cash reserves show that the policy doesn't help spur the economy.

But others argue business liquidity helped Canada weather the last downturn with fewer bankruptcies and job losses than the United States, and that Canadian corporations are well positioned to invest when the global economy rebounds.


Dr Mike said...

These boneheads in Ottawa (along with the boneheads in Toronto & other provy capitals) deliver these New Year goodies to Canada`s top CEOs while they continue to attack the little guy with more EI tax hikes (not to mention the dreaded HST here in Ontario).

Talk about dumb/stooopid....

Product producers sit on record cash reserves while the product buyer has his buying power (of said products) diminished.

Quick , somebody buy Jim Flaherty & Uncle Dwight Duncan common sense helmuts as this policy sucks like a Hoover

Dr Mike

Bruce Benson said...

Yup, Corpprations get the gold and taxpayers get the shaft. Thanks Steve, the biggest jackass to hit the scene since Mulrooney, BUT dumb ass Canadians are lovin it.

Anonymous said...

I have to pay HST on my broker fees. That really encourages me to invest....:) BB

Anonymous said...

Yes Folks: the 2% GST Cut Meter is running and from my back of the envelope calculations the 2% GST cut is costing the government treasury revenue about $10 to $15B per year ....maybe more.

We can add this HST/Corporate hoarding to the Harper Income Trust fraud show to the mix of bad policies !!

Harper whats the cost of that plasma TV on your GST announcement ?
I believe its 60% less !